Twitter (TWTR) Stock Spiking as Takeover Speculation Resurfaces

Twitter (TWTR) shares are jumping as takeover talk is resurfacing, according to several wire services.

NEW YORK (TheStreet) -- Shares of Twitter (TWTR) are rallying 5.54% to $36.11 on Tuesday afternoon as takeover talk has resurfaced, according to several wire services, Barron's reports.

The first takeover rumor happened in 2009, when Google (GOOGL) was in late stage negotiations to acquire the company for $250 million, however, nothing came of it. Since then, more takeover rumors have circulated, with another one happening in February 2011, and a similar situation arising in January, The Guardian reported.

Amid a lag in user growth, weak first quarter 2015 results, and Dick Costolo's resignation as CEO, one way that Twitter's problems can be rectified is through Google integration, Barron's said.

With its tie-in with Google, the online social networking service could initially get 3.5 million additional visitors and about 40 million users over time, Canaccord Genuity analyst Michael Graham said today.

The firm conducted a survey that found that Google is surfacing a lot of tweets in its search results, as analysts found that 54% of overall searches on a smartphone surfaced real-time Tweets.

Additionally, Twitter co-founder Jack Dorsey will start his first day as interim CEO tomorrow. This is his second time returning to the company since 2010.

Insight from TheStreet Rating's Team:

Twitter is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Here is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock in a recent alert:

We have been waiting patiently to reduce our exposure to TWTR and believe today's rumor-driven rally (shares up over 5% on takeover speculation) offers the perfect opportunity.